Summary
Under the CGST Act, Section 73(9) mandates tax orders within strict deadlines. Recent courts have ruled that unless force majeure applies, these deadlines can’t be extended, ensuring taxpayer certainty. Learn practical implications and compliance tips here.
Introduction
No extension of time limit under Section 73(9) means GST authorities must pass assessment orders within the statutory period unless a force majeure event occurs. This safeguards taxpayers from indefinite tax demands.
Understanding Section 73(9) of CGST Act
- Section 73 deals with recovery of tax not paid or short paid, without fraud.
- Sub-section (9) sets the time limit for passing orders:
- 3 years from the due date of annual return for the relevant financial year.
- Proviso allows extension only if there’s a force majeure (like natural disaster, pandemic, etc).
Key Case Law: No Extension Without Force Majeure
📌 Pragati Warehousing v. State of Maharashtra (2024)
The Bombay High Court quashed an assessment order passed beyond the limitation period under Section 73(9). It held that:
✅ No force majeure was pleaded by the department.
✅ Delay due to administrative reasons is not force majeure.
✅ Hence, the order was time-barred.
Reference: Bombay High Court Order (External official site link)
When Extension is Valid
- Force majeure must be genuine: flood, earthquake, pandemic lockdown.
- Mere workload or procedural delay is not valid.
- Proper record and evidence needed.
Practical Implications for Taxpayers
✅ Keep track of statutory deadlines in show cause notices.
✅ Challenge time-barred orders promptly.
✅ Maintain evidence of returns filed to calculate limitation.
Expert View
Efiletax Insight:
“Force majeure must be extraordinary. Departments can’t cite routine workload for delay. Businesses should preserve compliance documents to dispute any invalid extension.”
FAQs
Q1. Can the department pass an order after 3 years if no pandemic or natural disaster?
No. Without force majeure, any order after the limitation period is invalid.
Q2. What if the taxpayer caused the delay?
The law does not permit extension due to department’s inaction — taxpayer delay might invite penalty, but order must still be within statutory time.
Q3. How to challenge a delayed order?
File a writ petition in High Court citing Section 73(9) and relevant precedents.
Conclusion
The principle is clear: No extension of time limit under Section 73(9) without proven force majeure. This keeps GST adjudication fair and timely.